India's Reliance Jio Infocomm is likely to sign a contract worth £1.32 billion with Nokia to purchase 5G network equipment, according to reports. The contract could be signed in Helsinki, Finland, where Nokia is headquartered, the report added.
In October of last year, as Jio prepared to expand cellular services in India, the telecom division of Reliance Industries selected Nokia as a key provider.
In an auction for 5G spectrum last August, Jio purchased airwaves worth $11 billion and already had 5G services available in a number of cities. Additionally, it is collaborating with Google to introduce a low-cost 5G smartphone.
According to reports, HSBC, JP Morgan and Citigroup are among those backing Jio's 5G-related purchases, while European export credit agency Finnvera will be issuing guarantees to the lenders to extend offshore loans to Jio.
Swedish telecommunication company Ericsson had in October last year, announced a partnership with Jio to build a 5G standalone network in India. Jio announced the release of a 4G feature phone earlier this week in an effort to attract those who have not yet switched to smartphones, but analysts said the move was unlikely to have a significant impact on the Indian telecom market.